check ring set for blow by, it would smoke.
a35's have a bad habit of blowing the seals because the case side support bearing goes south then when run like that it spreads the seal into an oval.
marvel mystery oil will swell the seal if it isn't too far gone. alot of folks will tell you to overfill the tranny for racing....
it runs fine with just 5oz, it calls for like 7oz. if overfilled, it spits it out the sprocket seal givin you the black wheel of death.
run a piece of pantyhose instead of the restrictive airbox or metal mesh disc. if it clears up, downjet and replace filter.